Although cloud computing is a much fresh concept, it won’t be long before it completely conquers the traditional data centers. In a report, a researcher known as Gartner forecasted that in 2025 approximately 80% of companies will depend on cloud computing services rather than opting for their own servers. If that doesn’t say a lot about the potential of cloud computing services then I don’t know what does.
It is quite evident that cloud computing services are disruptive but is it possible that the distributed element associated with blockchain in fact disrupt the disrupter? In this day and age, Amazon Web Services and Microsoft Azure have a duopoly in the cloud computing market and it is quite difficult for new comers to penetrate the market.
However, penetration in the cloud computing market is possible if a company’s unique selling point is appealing. This is where blockchain comes in. Developers are noticing the benefits of entering the cloud computing market and they believe harnessing the power of blockchain to create a cloud computing server will be both beneficial for the customer – as it will cut down the cost of a centralized server – and the developer.
However, Azure and its peers don’t just provide one kind of cloud computing services which means that the different clouds provided by them aren’t created equal and aren’t similar. So, by combining these different options we are able to dig deeper and figure out how a blockchain based cloud computing service will disrupt the market of today.
Cloud Supplied On-Demand
As the name suggests, the price of cloud supplied on-demand depends upon the amount of service that is required. This type of cloud service is the most expensive one as the client just buys cloud as per his requirement with no on going contract with the supplier, so this doesn’t bind the buyer and the seller for long term.
So basically, how this works is that the vendor agrees to provide the buyer with the cloud computing services whenever they need it. The biggest feature here should be the scalability of the platform so that it is available whenever there is demand for it. A problem that needs to be catered is the outage of multiple servers as when there are a lot of clients operating at a single time then maintenance of the server becomes a challenge.
There are plenty of firms that require on-demand cloud services. Whether it is Amazon Prime or Brick-and-Mortar, every enterprise needs an uninterrupted service to keep their customers happy and keep the business running smoothly. Service providers can ensure this by having adequate computing power at all times.
Contrary to the on-demand cloud computing, cloud spotting is a relatively new and a much more efficient offering when it comes to cloud services. It is quite evident that people seek to buy the most cost-effective solutions and this is where cloud spotting comes in. In addition to being efficient, cloud spotting is a cheaper solution to purchase cloud computing. A client looking to purchase a computing spot can simply place a bid on it when or if it is available. Depending on the demand from his potential clients, the provider will come up with a market price for the cloud computing spot and at the peak time that market price will be the highest.
As soon as the market rate gets lowered than the bid price, the adequate spot for cloud computing is provided to the client. However, if the market rate increases and reaches a point above the bid price then the provider halts his services until the market price goes down again. Once the market price reaches a point below the bid price, the services are resumed.
Users can advantage from plenty of discounts and major cut downs on prices by opting for the cloud spotting option as opposed to the on-demand computing. According to Amazon Web Services clients have been able to get discounts ranging from 70-90% using the ride-sharing app known as Lyft.
Although for big companies, on-spot computing can’t really work but for companies testing out new things and looking for cheap options of computing, this can be a game changer.
Cloud on the blockchain
Amazon Web Services and its competitors basically sell their own server’s space, however, with the help of blockchain any unused computer space can be put up for purchase be it an unused PC at home, a gaming server or an idle mining rig.
For instance, an enterprise named Tatau does exactly this. Tatau basically helps people put up unused GPU resources for sale to clients such as AI developers. Any client who is looking to buy computing space from Tatau can easily do it by using the native token of this platform.
Since Tatau – the blockchain computing service provider – doesn’t have its own infrastructure or personal servers, it is predicted that such platforms can be more scalable and better in the long-run. As for Amazon Web Services, they have to always have adequate space for their clients in case the demand is in surplus to be scalable, but on the other hand when the demand is on the low, AWS will find that they have a lot of free space on hand which isn’t providing them with any benefit. Needless to say, it is evident that in such cases a decentralized cloud computing server is way efficient and beneficial.
This is one of the reasons why we will see a lot of big players in the computing market shift towards blockchain for cloud computing. For instance, AWS could buy affordable cloud computing at platforms such as Tatau and sell it to their premium clients for a high price.
However, on the other hand, it is also assumed that in case AWS has idle space due to lack of demand from clients, it could sell it on a blockchain based cloud computing platform. This would help the enterprise immensely and it is also predicted that AWS is likely to do that before it buys any computing from a blockchain based platform.